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Objective

Contribution splitting allows members to split their concessional contributions with their spouse. For more information refer to the ATO website.

In this task Jeevan made a concessional contribution of $10,000 in the previous financial year that will be split to his spouse Toni in the current year. By the end of this task you will be able to process contribution splitting transactions in Simple Fund 360.

Steps:

Jeevan would have recorded a concessional contribution in the prior year ($11764.71) which will be taxed at 15%. Refer to How to Enter Contributions for more.

In the current financial year, the contribution split will occur. Jeevan will transfer $10,000 (net of 15% tax on concessional contributions) to Toni as a rollover from account 46000. In this example, the transfer takes place on 01/07/2016.

In the same transaction, Toni will record a transfer into account 28500 of $10,000.

Once the transaction has been recorded it can be saved and the documents (Superannuation contribution splitting application) can be prepared.

Contributions splitting does not reduce the amount counted towards the original member's concessional contributions cap.

Bank Transfer for the split of $10,000 completed in Task 2.2 between Jeevan and Toni's bank accounts on 01/07/2016.

Task 2.4.1: Record Contribution Split

Record the contribution split through the Transaction List. Selecting account 46000/MEMBERCODE will prompt Simple Fund 360 to present you with the Rollover Payment Details section allowing you to record the transaction.

Important

When the Contribution Spit occurs partway through the year, ensure you have completed The Create Entries Process a day before the event.

From the Main Toolbar, go to Accounting.

Select Transaction list

From the Transaction List screen, select New Transaction. From the drop-down menu, select Journal.

Input the the following:

Date

01/07/2016

Reference

11

Description

Contribution Splitting

Under the first Account heading, select account 46000 for Jeevan Hockey Accumulation, Input the Rollover payment as $10,000.00 Debit.